An Independent Can Limit the Overdependence on the Owner Problem

question 45

Multiple Choice

An independent can limit the overdependence on the owner problem by _____.

• A)life insurance
• B)incorporating
• C)centralized decision making
• D)decentralized decision making

Grasp the mechanisms through which agency law stimulates business activity.

Identify the types of authority an agent can have and how it affects principal liability.

Comprehend the impact of actual and apparent authority in binding the principal.

Recognize the conditions under which a third party is bound by notifications given to an agent with apparent authority.

---

Definitions:

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials that flows down the side of a volcano during an explosive eruption, capable of destroying everything in its path.

Volcanic Breccia

A coarse-grained volcanic rock composed of angular fragments of volcanic material cemented together by finer particles or a mineral matrix.

Dome Collapse

The falling in of the roof of a volcanic dome due to gravitational failure, often leading to pyroclastic flows.

Volcanic Dome Collapse

The event where a volcanic dome, formed by the slow extrusion of viscous lava from a volcano, collapses, potentially leading to explosive eruptions.